Title: Celsius Granted Permission to Sell Altcoins for BTC and ETH Starting July 1
In a significant development, the bankruptcy judge of the US Southern District Court of New York has authorized Celsius, the bankrupt crypto lender, to sell or convert altcoins into Bitcoin (BTC) and Ether (ETH). This move comes as Celsius prepares for an upcoming distribution of assets to its creditors. The market has already responded positively, with CEL, the native Celsius Network token, experiencing a sharp rise in value. Let’s explore this development and its potential impact.
Celsius’ Altcoin Liquidation:
Bankruptcy Judge Martin Glenn has ruled that Celsius can begin selling or converting non-BTC and non-ETH cryptocurrencies, crypto tokens, or other cryptocurrency assets into BTC or ETH. This process is scheduled to commence on or after July 1, 2023. The conversion aims to maximize the value of the altcoins to be sold or converted. It is worth noting that the sales will adhere to applicable exemptions under US securities laws to comply with recent scrutiny by the Securities and Exchange Commission (SEC).
Implications for Altcoin Prices:
Celsius holds various altcoins, including Cardano (ADA), Polygon (MATIC), Near (NEAR), Bitcoin Cash (BCH), Litecoin (LTC), and Chainlink (LINK). With these tokens possibly being sold or converted, the market may experience fluctuations in their prices. Traders and investors will keenly watch how this liquidation process impacts the broader crypto market.
CEL Token Surge:
Following the news of Celsius being permitted to sell altcoins, the value of CEL, the native token, surged by 33% in the past 24 hours. This positive market reaction signals investor confidence in Celsius’ plan and potential growth prospects.
Reshaping the Restructuring Plan:
Celsius had filed for bankruptcy in July 2022 after temporary halts in customer withdrawals due to the collapse of Terra and Three Arrows Capital. In the court documents, it is mentioned that Celsius has been engaging with the SEC and state regulators to revise its restructuring plan, focusing on solely distributing crypto assets to creditors in Bitcoin and Ethereum.
With the bankruptcy court’s approval, Celsius is set to sell altcoins for BTC and ETH starting July 1. This move allows the crypto lender to optimize the value of its assets. Traders and investors will closely monitor the market response to this development, as it may impact the prices of altcoins involved. As Celsius moves forward with its restructuring plan, it remains to be seen how this bankruptcy case will evolve and its ultimate impact on the crypto industry.